Arthur Rank Hospice Charity Warns National Insurance Increase Will Affect Services

The Cambridge-based Arthur Rank Hospice Charity has indicated that the rise in employer National Insurance (NI) contributions, announced in the recent Budget, could lead to difficulties in delivering some of its services. The charity has urged the government to reconsider, estimating an additional £225,000 will be required to cover this increase starting next April. Unlike the broader NHS, hospices and general practitioners (GPs) are not exempt from this increase, although Labour’s health secretary has expressed an intention to investigate the impact on these groups. The charity, which holds NHS contracts, plans to engage with its local NHS commissioning board to inquire about potential funding assistance for the hospice’s costs. The charity operates a hospice facility in Cambridge, a day care centre located in Wisbech, and a community team that visits individuals in their homes across Cambridgeshire. Sharon Allen, the charity’s chief executive officer, highlighted its distinct financial position, noting that approximately 60% of its income comes from the NHS, in contrast to the typical 30% for other hospices. “We are in a stronger position, however, we still have to raise over £5m this financial year to cover our costs,” she stated. She further elaborated, “Even if the NHS does pass on the contributions for the 60% that they fund us for, that still means we have to find £90,000.” “Everybody’s really worried about it,” Ms. Allen added. Ms. Allen also indicated that increased minimum wage expenses would exert additional pressure. She explained that programs such as its Living Well services, which support people with life-limiting illnesses, do not receive any NHS funding, and that the £225,000 figure represents approximately 35% of that service’s running costs. The charity has called upon the health secretary to consider implementing an exemption for hospices. This appeal is supported by Hospices UK, which asserts that organizations providing NHS services should be treated identically to NHS bodies. A government spokesperson responded by saying: “We have protected small charities and businesses by more than doubling the Employment Allowance to £10,500, meaning more than half of them with National Insurance Contribution liabilities either gain or see no change next year.”